While many people protect themselves and their families by purchasing life insurance, some do not have adequate insurance to handle periods of critical illness. Today, millions are affected by sudden illnesses, such as heart attacks, strokes, and cancer.
Most agents know that Medicare pays only for a short-term rehabilitation period, not for long periods of convalescence. Long term care insurance can be used as a creative strategy for covering the longer periods. Agents can explain to clients how a long term care insurance policy can augment basic health insurance in the event of a critical illness.
How LTCI is sold
LTCI can be sold either as individual policies or as group policies. Group policies have simplified underwriting and do not screen for bad health as closely, so benefits tend to be more limited. A person who purchases their coverage through a group health plan might not get all the bells and whistles (such as a good-health discount, spousal discount, or inflation protection) that they would have if they purchased the policy on their own. Group long term care insurance is usually available to immediate family members, as well, but with full underwriting. Group insurance is also subject to chronic rate increases. A healthy individual always wants to be included in the best risk class with the healthiest people.
Amy Pollock is a partner with LTC Financial Partners, a national organization of long term care specialists. She specializes in long term care insurance, working with the top insurance carriers in the industry. For more information, contact her at 404-237-1189, amy.pollock@ltcfp.com or visit www.ltcfp.com.
